Credit Cards for Canadians with Poor Credit
Did you know that 3 out of 10 Canadians are affected by bad credit? If you are part of that group you know how much poor credit can affect many areas of your life from buying a home to purchasing a new car and of course, having a credit card.
Everyone needs a credit card on hand for emergency use and as atool to help improve their credit. Credit cards give you the ability to pay for car repairs or other expenses over time. Many have perks such as cash back rewards or other benefits. With secured cards you typically provide a deposit that equals the line of credit you will receive. This deposit protects the lender from loss in case you default on the payments. A few months of on time payments can drastically improve your score. Make sure you pay the balance in full each month to avoid interest if possible.
OpenSky Secured Visa
If you need a credit card in a pinch try the OpenSky Secured Visa. There’s no credit check required so your credit won’t take a hit with a hard inquiry. As long as you meet the minimum income requirements you are approved. Many credit cards require you to have a bank account. This one doesn’t. They offer many ways to make monthly payments including money order, wire transfer and debit cards. There is a small annual fee of $35 and $17.39% APR interest rate. With a deposit of $200 you can get a credit line of $200, however this card cannot convert to a standard credit card like some other secured cards.
Capital One Secured Mastercard
Capital One is a trusted name in the industry and has the perfect card to help you rebuild your credit. This card is unique because you may not have to secure the entire amount. Depending on your credit score you may be able to put down only $49 or $99 to get a credit limit of $200. It has some of the swanky benefits of a traditional credit card like $0 fees for foreign transactions and no annual fee. The APR of 26.99% on purchases is a reasonable rate. The great feature about this card is after about 5 months of on time payments you may be eligible to convert to a standard credit card and not a secured card. It is still possible to be denied for this card, particularly if your amount you earn in a single month is $425 lower than your monthly house payment. Even if you are turned down there are plenty of other great options for improving bad credit/
Credit One Bank Platinum Visa
The Credit One Platinum Visa is ideal if you have less than stellar credit and don’t want to put a deposit down. This card has a steep annual fee of $95, but if you don’t want to have a secured card it is a decent option. You will start with a credit line of $300 in most cases, however they regularly review your account to see if you are eligible for increased credit limits.
Indigo Mastercard offers $300 credit lines without any security deposit for those with less than perfect credit. Thi card has an APR of 24.99% and no annual fee. There is a soft inquiry to your credit, it won’t lower your score, but you can still be denied for this card.
Discover It Secured
The Discover It Secured card offers extremely competitive introductory rates. You may be able to enjoy a rate as low as 10.99% APR for the first 6 months you have the card, then it reverts to the standard rate of 24.99%. Since Discover offers a full line of credit cards, switching to a standard card is easy. After 8 months of on time payments you can transfer to an unsecured credit card. Even though your card is secured you can still earn cash back rewards, but don’t let this lure you into spending more than you can pay off in a month.
DCU Visa Platinum
Credit unions are the best kept secret for low interest rates and the DCU Visa Platinum delivers the goods. This secured credit card has an unbelievably low interest rate of 13.75% and no annual fees. The only caveat is you must be a member of the Digital Federal Credit Union to take advantage of this offer.
By using your card responsibly you can be on your way to improving your financial health and boosting your credit score. You can use your new secured card for purchases you already make such as groceries and gas instead of just spending money on items you don’t necessarily need. Paying off the balance at the end of the month will keep the interest from piling on. With these great credit cards for bad credit you have a phenomenal tool to rebuild your credit.